Lifting restrictions is bad for business for some firms

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Companies which enjoyed a boom in business over the last two years, are the firms now experiencing a slowdown in growth as economies reopen and restrictions ease.

People are no longer stuck at home in quarantine and are swapping a movie on Netflix for a trip to the cinema, going to the shops instead of buying online and returning to the workplace to attend meetings in person.

Amazon is scheduled to report results for its fourth quarter on Thursday. A week ago, the e-commerce giant marked its worst one-week performance in four years when shares fell 12%.However, it has not just dampened consumer demand. Investors are increasingly nervous the Federal Reserve will have to raise interest rates several times this year to tackle high inflation.

"We expected the decline in online shopping with the easing of restrictions," said chief executive Des Travers. She said many members did find that increases in sales were driven largely by consumers choosing to shop local and support small businesses in their communities - "a trend which we hope will continue".

 

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